Thu Nov 07 06:21:59 UTC 2024: ## Freshworks Cuts 13% of Workforce, Laying Off 660 Employees
**Chennai/US-based IT company Freshworks announced a 13% reduction in its global workforce, impacting 660 employees.** The move, announced by CEO Dennis Woodside, comes as part of a restructuring plan aimed at streamlining operations and focusing on key strategic priorities.
**The layoffs will affect approximately 500 employees in India, representing 12% of its workforce there, and 16% of US-based employees.** The evaluation and consultation process for layoffs in Europe, Australia, and other regions is currently underway.
**Freshworks attributed the decision to a realignment of its global workforce, focusing on its Employee Experience (EX), AI, and Customer Experience (CX) businesses.** The company plans to complete the restructuring by the end of its fiscal year, ending December 31, 2024.
**The layoffs are expected to result in charges of $11 million to $13 million in the fourth quarter, primarily related to separation payments, employee benefits, and related costs.** Despite the layoffs, Freshworks emphasized its profitable business and growing AI-powered products. The company believes these changes will streamline operations and accelerate growth.
**Freshworks has faced stock price pressure since its listing in September 2021.** The company’s new CEO, Woodside, has implemented several changes, including this recent layoff, to improve margins and boost stock prices.
**This marks the third round of layoffs for Freshworks since March 2023, with a total of approximately 875 employees losing their jobs.** The company also saw a major management realignment in May, with founder Girish Mathrubootham stepping down as CEO and becoming executive chairman.
**Freshworks reported reduced net loss in the third quarter of 2024 and saw a 22% increase in total revenue.** The company has raised its fourth-quarter and full-year revenue projections, despite the impact of layoffs.
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